Post pointed to data from market analysts Nielsen that showed that during Q3 sales in the ready to eat cereal category were flat at +0.1%.

The Nielsen data also showed that Post had lost market share during the quarter. Post’s share in the US ready to eat cereal market Food, Drug and Mass category fell 0.9 share pomts to 10.6%.

Post said that volumes deciilned across most of its portfolio, with Honey Bunches of Oats and Pebbles brands down the most.

In June, the company launched a new line of value price cereals under its Good Morenings brand. It intends to extend line further over the next year, including the launches of Grape Nuts Fit, new Great Grains flavours and a ‘chocolateier’ variety of Cocoa Pebbles.

The company reaffirmed its outlook for fiscal 2012, expecting adjusted EBITA of between $200m and $210. However, it was apprehensive about the outlook for 2013.

“While it is still early in Post's planning for fiscal 2013, the recent drought has created significant commodity price volatility,” the firm said in its financial release.

“In 2013, Post management expects to see meaningful ingredient cost inflation, and will continue to monitor the commodity landscape closely and look for opportunities to mitigate increased costs,” it concluded.

The company will hold a conference call on its Q3 performance on Monday.

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